Consolidated Financial Results for the Three Months Ended June 30, 2010 (Prepared in Accordance with U.S

Consolidated Financial Results for the Three Months Ended June 30, 2010 (Prepared in Accordance with U.S. GAAP) August 5, 2010

KONAMI CORPORATION Address: 7-2, Akasaka 9-chome, Minato-ku, Tokyo, Japan Stock code number, TSE: 9766 Ticker symbol, NYSE: KNM URL: www.konami.net Shares listed: Tokyo Stock Exchange, New York Stock Exchange and London Stock Exchange Representative: Kagemasa Kozuki / Representative Director and Chairman of the Board, President Contact: Noriaki Yamaguchi / Representative Director, Vice-President, Corporate Officer (Phone: +81-3-5771-0222) Beginning date of dividend payment: - Adoption of U.S. GAAP: Yes

1. Consolidated Financial Results for the Three Months Ended June 30, 2010 (Amounts are rounded to the nearest million) (1) Consolidated Results of Operations (Millions of Yen, except per share data) Income before Net income income taxes and attributable to Operating equity in net income KONAMI Net revenues income of affiliated company CORPORATION Three months ended June 30, 2010 53,183 2,879 2,452 1,265 % change from previous period (5.0)% 187.9% 171.2% 244.7% Three months ended June 30, 2009 55,975 1,000 904 367 % change from previous period (20.9)% (91.4)% (92.3)% (93.5)%

Basic net income Diluted net income attributable to attributable to KONAMI KONAMI CORPORATION per CORPORATION per share (yen) share (yen) Three months ended June 30, 2010 9.48 9.48 Three months ended June 30, 2009 2.75 2.75

(2) Consolidated Financial Position (Millions of Yen, except per share amounts) KONAMI KONAMI KONAMI CORPORATION CORPORATION CORPORATION stockholders’ stockholders’ stockholders' Total assets Total equity equity equity ratio equity per share June 30, 2010 285,847 184,989 180,144 63.0% 1,349.79 March 31, 2010 298,198 189,231 184,465 61.9% 1,382.16

2. Cash Dividends Cash dividends per share (yen) Record Date Second quarter First quarter end Third quarter end Year end Annual end Year ended March 31, 2010 - 27.00 - 27.00 54.00

Year ending March 31, 2011 -

-Forecast- 16.00 - 16.00 32.00 Change in dividend forecasts during the three months ended June 30, 2010: None

3. Consolidated Earnings Forecast for the Year Ending March 31, 2011 (Millions of Yen, except per share data) Income before Net income income taxes and Net income attributable to equity in net attributable to KONAMI Operating income of affiliated KONAMI CORPORATION Net revenues income company CORPORATION per share Six months ending September 30, 2010 - - - - - % change from the same period in previous year - - - - - Year ending March 31, 2011 285,000 24,500 22,500 13,500 101.15 % change from previous year 8.7% 31.3% 31.4% 1.4% Note: 1. Change in earnings forecasts for the fiscal year ending March 31, 2011 during the three months ended June 30, 2010: None 2. We do not disclose consolidated earnings forecasts for the six months ending September 30, 2010

4. Other Please refer to page 10 for details. (1) Changes in significant consolidated subsidiaries during the period (status changes of subsidiaries due to changes in the scope of consolidation) : None (2) Adoption of simplified methods in accounting principles or specific accounting procedures for quarterly consolidated financial statements: None (3) Changes in accounting principles, procedures and reporting policies 1. Changes accompanying amendment of accounting standard: None 2. Other: None (4) Number of shares issued (Common Stock) 1. Number of shares issued: (Treasury stock included) Three months ended June 30, 2010 143,500,000 shares Year ended March 31, 2010 143,500,000 shares 2. Number of Treasury Stock: Three months ended June 30, 2010 10,039,513 shares Year ended March 31, 2010 10,039,336 shares 3. Average number of shares outstanding: Three months ended June 30, 2010 133,460,547 shares Three months ended June 30, 2009 133,461,341 shares

2 Information Regarding the Quarterly Review Procedures: This report is outside the scope of the procedures for review of quarterly consolidated financial statements as required under the Financial Instruments and Exchange Act of Japan. The aforementioned procedures have not been completed as of the time of disclosure of this report.

Cautionary Statement with Respect to Forward-Looking Statements: Statements made in this document with respect to our current plans, estimates, strategies and beliefs, including the above forecasts, are forward-looking statements about our future performance. These statements are based on management's assumptions and beliefs in light of information currently available to it and, therefore, you should not place undue reliance on them. A number of important factors could cause actual results to be materially different from and worse than those discussed in forward-looking statements. Such factors include, but are not limited to: (i) changes in economic conditions affecting our operations; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar and the Euro; (iii) our ability to continue to win acceptance of our products, which are offered in highly competitive markets characterized by the continuous introduction of new products, rapid developments in technology and subjective and changing consumer preferences; (iv) our ability to successfully expand internationally with a focus on our Digital Entertainment business and Gaming & System business; (v) our ability to successfully expand the scope of our business and broaden our customer base through our Health & Fitness business; (vi) regulatory developments and changes and our ability to respond and adapt to those changes; (vii) our expectations with regard to further acquisitions and the integration of any companies we may acquire; and (viii) the outcome of existing contingencies.

Please refer to pages 8 and 9 for further information regarding our business forecasts.

1. Business Performance

1. Consolidated Results of Operations

(1) Business Overview Although the Japanese economy showed signs of recovery from the recent economic and financial slowdown, the business environment surrounding the KONAMI CORPORATION and its subsidiaries (“KONAMI”) continued to be severe. This was due to factors such as restrained consumer spending and focused on low-end commodities.

In regard with the entertainment industry, the Nintendo 3DS, and in consoles, new products for PlayStation 3 and Xbox 360 offering new ways to operate and play video games were unveiled at the Electronic Entertainment Expo 2010 (E3), which was held in the US in June 2010. They attracted great attention not only in Japan but in the overseas market as well, mainly in North America and Europe. Furthermore, for the three months ended June 30, 2010, the home video game market became favorable so that it responded to “Year of Sports” festivities when soccer fans were becoming even more passionate than usual.

Meanwhile, a severe business environment persisted for major casino operators in Las Vegas and elsewhere. However, there are some promising signs overseas, including an increase in the number of U.S. states that are lifting their gaming bans as part of measures to turn around ailing state finances and the legalization and opening of casinos in Singapore.

In the health and fitness industry, heightened interest in and demand related to the maintenance and promotion of good health is expected to continue into the future due to the aging population as well as concern over lifestyle diseases.

Against such backdrop, Digital Entertainment segment of KONAMI rolled out the latest titles in home video game software series, such as the METAL GEAR series, METAL GEAR SOLID PEACE WALKER and Winning Eleven (known in the US and Europe as PRO EVOLUTION SOCCER) series on multiple platforms. Those sales progressed favorably.

As for the Gaming & System segment, KONAMI continued to reinforce product rollout and marketing with a focus on the Podium.

In the Health & Fitness segment, we increased the number of new fitness clubs under KONAMI’s direct management and expanded the portfolio of fitness clubs outsourced to us. At the same time, we reinforced the marketing of health products, drove forward the computerization of health management and strove to expand and enrich services, both within and outside our facilities, supporting the promotion and maintenance of good health.

In terms of the consolidated results for the three months ended June 30, 2010, net revenues amounted to ¥53,183 million (a year-on-year decrease of 5.0%), operating income was ¥2,879 million (a year-on-year increase of 187.9%), income before income taxes and equity in net income of affiliated company was ¥2,452 million (a year-on-year increase of 171.2%), and net income attributable to KONAMI CORPORATION was ¥1,265 million (a year-on-year increase of 244.7%).

(2) Performance by Business Segment Summary of net revenues by business segment:

Millions of Yen Three months ended Three months ended % change June 30, 2009 June 30, 2010 Digital Entertainment ¥24,601 ¥25,016 1.7 Gaming & System 3,907 4,346 11.2 Health & Fitness 21,438 21,428 (0.0) Other and Eliminations 6,029 2,393 (60.3) Consolidated net revenues ¥55,975 ¥53,183 (5.0)

Digital Entertainment

Computer & Video Games business: METAL GEAR SOLID PEACE WALKER, the first sequel in the METAL GEAR series for the PSP, was launched in Japan in April 2010, and in North America and Europe in June 2010. Sales of this title progressed steadily, with the game receiving favorable reviews—it became the first PSP title to receive a perfect score of 40 points in an industry magazine’s cross review. Furthermore, co-op modes, etc., which leverage the characteristic features of handheld gaming devices, are being well received by hardcore METAL GEAR fans.

Meanwhile, WORLD SOCCER Winning Eleven 2010 Aoki Samurai no Chosen was launched on multiple platforms in May to coincide with the once-every-four-years festivities that excite soccer fans worldwide. This title includes the ‘Japan Challenge Mode,’ which has the Japanese national team competing to become No.1 in the world. Steady sales were recorded for this game in Japan, while the re-launch of PES 2010 - Pro Evolution Soccer, also saw solid sales in Europe and the Americas (with a focus on South and Central America).

LOVEPLUS, which preceded the new romance communication game LOVEPLUSPLUS that was released in June, created a big social phenomenon in Japan. The game features a new twist—enjoying daily life with a girlfriend whose heart the player has captured. The major attention LOVEPLUS received from various media outlets was recognized by the MM Research Institute, with the title receiving the High Profile Award at the MM Research Institute Contest 2010. The sequel, LOVEPLUSPLUS, achieved a larger first week sales volume than the volume marked by its predecessor. Furthermore, the LOVEPLUSPLUS boom is continuing to heat up as the game is rolled out in a variety of other forms, including the simultaneous serialization of an adaptation over five comic magazines published by Kodansha as well as through the sales of related products, such as figurines. In Japan, the realistic professional baseball game PUROYAKYU SPIRITS 2010, which, for the first time in the series, is now also available for the PSP, was launched on multiple platforms in April. Meanwhile, the academy romance simulation game for women TOKIMEKI MEMORIAL Girl’s Side 3rd Story and the new animated title FAIRY TAIL PORTABLE GUILD were launched in June, both recording strong sales.

Amusement business: Sales of medal games launched in the previous fiscal year remained healthy. Furthermore, the PASELI e-money service, which was launched in March with QUIZ MAGIC ACADEMY Ⅶ, was expanded in April to include MAH-JONG FIGHT CLUB GARYOTENSEI.

Card Games business: Yu-Gi-Oh! Trading Card Game series continuously sold well.

Overseas, an undertaking in the US utilizing DanceDanceRevolution to fight obesity is expanding, and sales of the series’ titles are progressing robustly. As for the Electronic Entertainment Expo 2010 (E3), which was

5 held in the US in June, KONAMI exhibited high-profile games such as Castlevania: Lords of Shadow, the latest in the Castlevania series created with the assistance of Kojima Productions, which is known for the METAL GEAR series. Also exhibited was PES 2011 - Pro Evolution Soccer, the latest title in the Winning Eleven series and the first video game in the world to include Copa Libertadores, the soccer tournament that determines the top club team in South America. The exhibits at the trade fair helped foster high expectations and focus on upcoming KONAMI game content.

In terms of financial performance, consolidated net revenues for the three months ended June 30, 2010 in this segment amounted to ¥25,016 million (a year-on-year increase of 1.7%).

Gaming & System

In the North American market, the Podium continues to enjoy favorable sales. Sales through participation agreements (in which profits are shared with casino operators) increased and are steadily expanding market shares. Full-scale marketing is also under progress in Europe and Central and South America, building a distributor network for the market.

In the Australian market, the Podium progressed favorably. The introduction of the Konami Casio Management System in the market also contributed to the improvement of KONAMI revenues. In the Asia market as well, full-scale marketing is under progress, building a distributor network for the market.

In terms of financial performance, consolidated net revenues for the three months ended June 30, 2010 in this segment amounted to ¥4,346 million (a year-on-year increase of 11.2%).

Health & Fitness

Operation of fitness clubs: A difficult business climate persisted in the fitness club industry as consumer spending remained under pressure due to uncertainty over the future economic climate, price-competition progressed further and the increase in the number of fitness clubs made it difficult to recruit new members. Against such backdrop, KONAMI opened two facilities in April: one in Niigata (Niigata City) and another in Kami-Ooka (Yokohama City). Both fitness clubs are located in complexes that are directly connected to train stations, and they are proving popular for such features as unique studio programs and excellent bathing facilities. Furthermore, we promoted the development and enrichment of services that meet the characteristics of each community where our fitness clubs are located as well as boosted the content of the instruction provided at the fitness clubs’ golf schools by introducing digital golf simulators, which are receiving positive customer feedback.

We also developed and introduced new health programs utilizing IT, that is KONAMI’s strengths, in health management, exercise and nutritional guidance, and provided upgraded services to our customers, whose health consciousness is on the rise.

Operation of sports facilities outsourced to us: In the management of facilities outsourced to KONAMI, we added 30 facilities, including the health promotion center at the area for general health in the Toyooka City (Hyogo Prefecture) and the Kitakyusyu City sports facilities (Fukuoka Prefecture), to the portfolio during the three months, and we continued to promote the health of community residents by making use of KONAMI’s know-how and experience in the operation of public facilities, etc.

In terms of financial performance, consolidated net revenues for the three months ended June 30, 2010 in this segment amounted to ¥21,428 million (a year-on-year decrease of 0.0%).

6 2. Consolidated Financial Position (1) Total Assets, Total Liabilities and Total KONAMI CORPORATION stockholders’ equity Total Assets: Total assets amounted to ¥285,847 million for the three months ended June 30, 2010, decreasing by ¥12,351 compared with March 31, 2010. This decrease mainly resulted from decreases in cash and cash equivalents and accounts receivable, in addition to a increase in inventories.

Total liabilities: Total liabilities amounted to ¥100,858 million for the three months ended June 30, 2010, decreasing by ¥8,109 compared with March 31, 2010. This decrease primarily resulted from decreases in accrued expenses and accrued income taxes.

Total KONAMI CORPORATION stockholders’ equity: Total KONAMI CORPORATION stockholders’ equity amounted to ¥180,144 million for the three months ended June 30, 2010, decreasing by ¥4,321 compared with March 31, 2010. This decrease mainly resulted from provision of dividends for the year ended March 31, 2010 and a decrease in accumulated other comprehensive income (loss) including foreign currency translation adjustments. KONAMI CORPORATION stockholders’ equity ratio was 63.0%, increasing by 1.1 % compared with March 31, 2010.

(2) Cash Flows Cash flow summary for the three months ended June 30, 2010:

Millions of Yen Three months ended Three months ended Change June 30, 2009 June 30, 2010 Net cash provided by (used in) ¥(6,952) ¥3,550 ¥10,502 operating activities Net cash used in investing activities (2,161) (1,635) 526

Net cash used in financing activities (4,423) (4,321) 102 Effect of exchange rate changes on 304 (949) (1,253) cash and cash equivalents Net decrease in cash and cash (13,232) (3,355) 9,877 equivalents Cash and cash equivalents, end of the ¥40,336 ¥47,385 ¥7,049 period

Cash and cash equivalents (hereafter, referred to as “Net cash”), for the three months ended June 30, 2010, amounted to ¥47,385 million, a decrease of ¥3,355 million compared to the year ended March 31, 2010, and a year-on-year increase of 17.5%.

Cash flow summary for each activity for the three months ended June 30, 2010 is as follows:

Cash flows from operating activities: Net cash from operating activities amounted to ¥3,550 million for the three months ended June 30, 2010, (for the three months ended June 30, 2009, used in operating activities amounted to ¥6,952 million). This is primarily due to increases in net income for the three months ended June 30, 2010 and inflows relating to accounts receivable.

Cash flows from investing activities:

7 Net cash used in investing activities amounted to ¥1,635 million for the three months ended June 30, 2010, a year-on-year decrease of 24.3%. This decrease mainly resulted from a decrease in disbursement of deposit relating to offices and facilities, despite an increase in capital expenditures for investments.

Cash flows from financing activities: Net cash used in financing activities amounted to ¥4,321 million for the three months ended June 30, 2010, a year-on-year decrease of 2.3%. These decrease primarily resulted from a decrease in dividends paid.

3. Outlook for Fiscal Year Ending March 31, 2011

Digital Entertainment

In digital entertainment, we will continue to focus on the expanding overseas video game software market. We plan to launch Castlevania: Lords of Shadow and Winning Eleven (known in the US and Europe as PRO EVOLUTION SOCCER) series, which was exhibited at the Electronic Entertainment Expo 2010 (E3) to great response, worldwide.

Regarding music games, which continue to enjoy perennial popularity in North America and Europe, we plan to launch a varied lineup, such as the latest title in the DanceDanceRevolution series for which demand is now also increasing for use in the promotion of physical fitness; the karaoke game Karaoke Revolution Glee, which is based on the highly popular musical comedy TV series “Glee” broadcast in the US on Fox Broadcasting; and Def Jam Rapstar, in which famous artists have collaborated with his/her record label. Furthermore, we will also devote our efforts to the online marketing of titles for the increasing number of game consoles with network connectivity as well as mobile phones and mobile terminals.

In arcade games, we are scheduled to launch the much-awaited gun-action warfare game METAL GEAR ARCADE, which makes use of 3D visuals. Furthermore, in addition to new titles in such popular series as MAH-JONG FIGHT CLUB, BASEBALL HEROES and QUIZ MAGIC ACADEMY, we plan to launch new titles while keeping an eye on the market environment. As for the PASELI e-money service, which was launched this spring to help boost demand, we will sequentially expand the number of arcade cabinets, including those for music games, through which the service can be used, and we will continue to propose innovative services that drive the arcade industry. As for popular content, we will pursue high synergy through multifaceted development that is not restricted to home video game software, arcade games or card games.

Gaming & System

In slot machine marketing, regarding steppers, we will continue to implement the aggressive marketing of the Advantage 5 series which is enjoying popularity. Regarding video slot machines, we will carry out product development with a focus on the Podium, which is a standard series, and seek to improve our sales.

The Konami Casino Management System continues to be adopted in the North American and Australian markets, particularly by major operators. In the future, we intend to aggressively market the system in other markets, develop new functions, pursue strategic alliances with other companies, and reinforce the system’s strength as a product. Furthermore, we intend to stabilize our operational results in this segment by increasing the amount of steady, periodical income through expansion of participation agreement (profit sharing with operators) sales.

KONAMI intends to further reinforce collaboration between its three bases – the United States, Australia and Japan – and promote the efficiency of our operations and reinforce our production and sales.

8 Furthermore, we intend to develop new products that respond to changes in society and meet demands and enhance the added-value of existing products. We will continue to use KONAMI’s strengths in the domain of entertainment as the foundation for proposing new products that will bring even greater enjoyment to our customers.

Health & Fitness

Market conditions are expected to remain harsh for the health and fitness segment. However, we believe that opportunities for the operation of fitness clubs and the development and marketing of health and fitness equipment will continue to increase with heightened social awareness, against the backdrop of an aging society and government measures taken against lifestyle diseases, of promoting good health. Under such circumstances, KONAMI strives to accurately grasp diversifying customer needs and aim to enhance the added-value of Konami Sports Clubs by proposing new lifestyles.

We intend to offer extensive programs that meet the various needs of customers of all ages—from children to adults—by opening facilities at highly convenient locations in communities that promise to become a center of various people’s lives, adopting fitness equipment such as golf training programs, which utilize the latest digital golf simulators, the BODYBIKE (stationary bicycle), which allows body fat to be burned while pedaling to music, and programs like the LES MILLS PROGRAMS (group exercise), which is featured in 75 countries around the world, and an enriched and expanded Undojuku (sports school), based on the concept of physical and mental training as well as self-development.

We plan to promote our health and fitness business by leveraging our strengths in the operation of more than 300 of Japan’s largest-scale sports clubs, rolling out new facilities that meet regional characteristics and customer needs, expanding our products and services and by creating synergy through the enrichment of the programs offered at the facilities, the computerization of health management and the upgrading, the expansion of our product lineup and other efforts.

Projected consolidated results for the fiscal year ending March 31, 2011 are as follows: net revenue of 285,000 million yen; operating income of 24,500 million yen; income before income taxes and equity in net income of affiliated company of 22,500 million yen; and net income attributable to KONAMI CORPORATION of 13,500 million yen. Thus, there is no change from the forecast figures released in the “Consolidated financial results for the year ended March 31, 2010” dated May 13, 2010.

Konami, as a business affected by “hit” products, requires flexibility in how its products are released and is subject to fluctuations in sales throughout the course of the year. For this reason, projected consolidated results for the six months ending September 30, 2010 are not disclosed. As for the disclosure of quarterly financial results, we will continue to make an effort to provide them as thoroughly as possible.

Special Note: This document contains “forward-looking statements,” or statements related to future events that are based on management’s assumptions and beliefs in light of information currently available. These statements are subject to various risks and uncertainties.

When relying on forward-looking statements to make investments, you should not place undue reliance on such forward-looking statements. Actual results may be affected by a number of important factors and materially different from those discussed in forward-looking statements. Such factors include, but are not limited to, changes in economic conditions affecting our operations, and market trends and fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar and the Euro.

9 2. Other

1. Changes in significant consolidated subsidiaries during the period (status

changes of subsidiaries due to changes in the scope of consolidation) : None

2. Adoption of simplified methods in accounting principles for quarterly

consolidated financial statements: None

3. Changes in accounting principles, procedures and reporting policies (1) Changes accompanying amendment of accounting standard: None (2) Other: None

3. Consolidated Financial Statements

1. Consolidated Balance Sheets (Unaudited)

Thousands of U.S. Millions of Yen Dollars June 30, 2009 June 30, 2010 March 31, 2010 June 30, 2010 % % % ASSETS CURRENT ASSETS: Cash and cash equivalents ¥40,336 ¥47,385 ¥50,740 $535,545 Trade notes and accounts receivable, net of allowance for doubtful accounts of ¥482 million, ¥621 million ($7,019 thousand) and ¥680 million at June 30, 2009, June 30, 2010, and March 31, 2010,respectively 22,868 17,523 30,164 198,044 Inventories 27,134 26,410 23,497 298,486 Deferred income taxes, net 19,346 20,152 20,669 227,758 Prepaid expenses and other current 139,478 assets 12,987 12,341 9,492 Total current assets 122,671 42.6 123,811 43.3 134,562 45.1 1,399,311

PROPERTY AND EQUIPMENT, net 61,093 21.2 61,684 21.6 62,434 20.9 697,151

INVESTMENTS AND OTHER ASSETS: Investments in marketable securities 494 210 226 2,373 Investments in affiliate 2,066 2,079 2,146 23,497 Identifiable intangible assets 35,832 35,166 35,246 397,446 Goodwill 21,914 21,877 21,899 247,254 Lease deposits 28,364 27,485 27,685 310,635 Deferred income taxes, net 3,578 3,640 3,531 41,139 Other assets 11,914 9,895 10,469 111,834 Total investments and other assets 104,162 36.2 100,352 35.1 101,202 34.0 1,134,178 TOTAL ASSETS ¥287,926 100.0 ¥285,847 100.0 ¥298,198 100.0 $3,230,640

Thousands of U.S. Millions of Yen Dollars June 30, 2009 June 30, 2010 March 31, 2010 June 30, 2010 % % % LIABILITIES CURRENT LIABILITIES: Current portion of long-term debt and capital lease obligations ¥3,277 ¥2,099 ¥2,433 $23,723 Trade notes and accounts payable 14,260 15,997 16,138 180,798 Accrued income taxes 428 581 3,962 6,566 Accrued expenses 15,165 13,345 18,568 150,825 Deferred revenue 6,694 6,159 6,246 69,609 Other current liabilities 11,582 7,438 6,118 84,064 Total current liabilities 51,406 17.8 45,619 16.0 53,465 17.9 515,585

LONG-TERM LIABILITIES: Long-term debt and capital lease obligations, less current portion 38,836 39,693 39,885 448,610 Accrued pension and severance costs 2,725 2,851 2,861 32,222 Deferred income taxes, net 6,421 4,101 4,162 46,350 Other long-term liabilities 8,144 8,594 8,594 97,129 Total long-term liabilities 56,126 19.5 55,239 19.3 55,502 18.6 624,311 TOTAL LIABILITIES 107,532 37.3 100,858 35.3 108,967 36.5 1,139,896

COMMITMENTS AND CONTINGENCIES

EQUITY KONAMI CORPORATION stockholders’ equity: Common stock, no par value- Authorized 450,000,000 shares; issued 143,500,000 shares at June 30, 2009, June 30, 2010 and March 31, 2010 47,399 16.5 47,399 16.6 47,399 15.9 535,703 Additional paid-in capital 77,090 26.8 77,089 27.0 77,089 25.9 871,259 Legal reserve 284 0.1 284 0.1 284 0.1 3,210 Retained earnings 73,711 25.6 80,716 28.2 83,055 27.9 912,251 Accumulated other comprehensive income (loss) 318 0.1 (2,156) (0.8) (175) (0.1) (24,367) Treasury stock, at cost- 10,038,866 shares, 10,039,513 shares and 10,039,336 shares at June 30, 2009, June 30, 2010 and March 31, 2010, respectively (23,187) (8.1) (23,188) (8.1) (23,187) (7.8) (262,070) Total KONAMI CORPORATION stockholders’ equity 175,615 61.0 180,144 63.0 184,465 61.9 2,035,986

Noncontrolling interest 4,779 1.7 4,845 1.7 4,766 1.6 54,758

TOTAL EQUITY 180,394 62.7 184,989 64.7 189,231 63.5 2,090,744

TOTAL LIABILITIES AND EQUITY ¥287,926 100.0 ¥285,847 100.0 ¥298,198 100.0 $3,230,640

2. Consolidated Statements of Income (Unaudited)

Thousands of U.S. Millions of Yen Dollars Three months Three months Three months Year ended ended ended ended March 31, 2010 June 30, 2009 June 30, 2010 June 30, 2010 %% % NET REVENUES: Product sales revenue ¥36,883 ¥33,891 ¥185,514 $383,036 Service revenue 19,092 19,292 76,630 218,038 Total net revenues 55,975 100.0 53,183 100.0 262,144 100.0 601,074 COSTS AND EXPENSES: Costs of products sold 21,579 20,389 109,910 230,437 Costs of services rendered 19,102 18,941 75,824 214,071 Selling, general and administrative 14,294 10,974 55,407 124,028 Restructuring and impairment charges - - 2,339 - Total costs and expenses 54,975 98.2 50,304 94.6 243,480 92.9 568,536 Operating income 1,000 1.8 2,879 5.4 18,664 7.1 32,538 OTHER INCOME (EXPENSES): Interest income 35 78 165 882 Interest expense (397) (390) (1,574) (4,408) Foreign currency exchange gain (loss), net 269 (111) 67 (1,255) Other, net (3) (4) (200) (45) Other income (expenses), net (96) (0.2) (427) (0.8) (1,542) (0.6) (4,826) INCOME BEFORE INCOME TAXES AND EQUITY IN NET INCOME OF AFFILIATED COMPANY 904 1.6 2,452 4.6 17,122 6.5 27,712 INCOME TAXES 436 0.7 1,115 2.1 3,600 1.3 12,601 EQUITY IN NET INCOME OF AFFILIATED COMPANY 20 0.0 13 0.0 56 0.0 147 NET INCOME 488 0.9 1,350 2.5 13,578 5.2 15,258 NET INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST 121 0.2 85 0.1 264 0.1 961 NET INCOME ATTRIBUTABLE TO KONAMI CORPORATION ¥367 0.7 ¥1,265 2.4 ¥13,314 5.1 $14,297

PER SHARE DATA: Yen U.S. Dollar Three months Three months Three months Year ended ended ended ended June 30, 2009 June 30, 2010 March 31, 2010 June 30, 2010 Basic net income attributable to KONAMI CORPORATION per share ¥2.75 ¥9.48 ¥99.76 $0.11 Diluted net income attributable to KONAMI CORPORATION per share 2.75 9.48 99.76 0.11 Weighted-average common shares outstanding 133,461,341 133,460,547 133,461,138 Diluted weighted-average common shares outstanding 133,461,341 133,460,547 133,461,138

3. Consolidated Statements of Cash Flows (Unaudited)

Thousands of Millions of Yen U.S. Dollars Three months Three months Three months Year ended ended ended ended March 31, 2010 June 30, 2009 June 30, 2010 June 30, 2010 Cash flows from operating activities: Net income ¥488 ¥1,350 ¥13,578 $15,258 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,140 3,146 12,899 35,556 Provision for doubtful receivables 15 (90) 259 (1,017) Restructuring and impairment charges - - 2,339 - Equity in net loss (income) of affiliated company (20) (13) (56) (147) Deferred income taxes (160) 372 (3,577) 4,204 Change in assets and liabilities, net of business acquired: Decrease (increase) in trade notes and accounts receivable 6,505 11,872 (261) 134,177 Decrease (increase) in inventories (3,647) (3,729) (2,455) (42,145) Decrease (increase) in other receivables (110) (122) (406) (1,379) Decrease (increase) in prepaid expenses (793) (1,341) (24) (15,156) Increase (decrease) in trade notes and accounts payable (2,602) 168 (949) 1,899 Increase (decrease) in accrued income taxes, net of tax refunds (8,619) (5,043) (2,526) (56,996) Increase (decrease) in accrued expenses (3,017) (3,677) (262) (41,557) Increase (decrease) in deferred revenue (878) 158 (1,294) 1,786 Increase (decrease) in advance received (27) 17 (478) 192 Increase (decrease) in deposits 2,326 (98) (396) (1,108) Other, net 447 580 (2,094) 6,555 Net cash provided by (used in) operating activities (6,952) 3,550 14,297 40,122

Thousands of Millions of Yen U.S. Dollars Three months Three months Three months Year ended ended ended ended March 31, 2010 June 30, 2009 June 30, 2010 June 30, 2010 Cash flows from investing activities: Capital expenditures (1,585) (1,699) (6,318) (19,202) Proceeds from sales of property and equipment - 5 10 56 Decrease (increase) in lease deposits, net (590) 55 (374) 622 Other, net 14 4 233 45 Net cash used in investing activities (2,161) (1,635) (6,449) (18,479) Cash flows from financing activities: Repayments of long-term debt (148) (204) (592) (2,306) Principal payments under capital lease obligations (679) (707) (2,581) (7,991) Dividends paid (3,595) (3,409) (7,569) (38,528) Purchases of treasury stock (1) (1) (3) (11) Other, net 0 0 1 0 Net cash used in financing activities (4,423) (4,321) (10,744) (48,836) Effect of exchange rate changes on cash and cash equivalents 304 (949) 68 (10,726) Net increase (decrease) in cash and cash equivalents (13,232) (3,355) (2,828) (37,919) Cash and cash equivalents, beginning of the period 53,568 50,740 53,568 573,464 Cash and cash equivalents, end of the period ¥40,336 ¥47,385 ¥50,740 $535,545

4. Going concern assumption: None

5. Significant changes in KONAMI CORPORATION stockholders’ equity: None

6. Segment Information (Unaudited)

(1) Segment information

Three months ended Digital Other, Corporate and June 30, 2009 Entertainment Gaming & System Health & Fitness Eliminations Consolidated (Millions of Yen) Net revenue: Customers ¥ 24,504 ¥ 3,907 ¥ 21,348 ¥ 6,216 ¥ 55,975 Intersegment 97 - 90 (187) - Total 24,601 3,907 21,438 6,029 55,975 Operating expenses 23,054 3,224 21,415 7,282 54,975 Operating income (loss) ¥ 1,547 ¥ 683 ¥ 23 ¥ (1,253) ¥ 1,000

Three months ended Digital Other, Corporate and June 30, 2010 Entertainment Gaming & System Health & Fitness Eliminations Consolidated (Millions of Yen) Net revenue: Customers ¥ 24,854 ¥ 4,346 ¥ 21,319 ¥ 2,664 ¥ 53,183 Intersegment 162 － 109 (271) － Total 25,016 4,346 21,428 2,393 53,183 Operating expenses 22,669 3,195 21,279 3,161 50,304 Operating income (loss) ¥ 2,347 ¥ 1,151 ¥ 149 ¥ (768) ¥ 2,879

Year ended Digital Other, Corporate and March 31, 2010 Entertainment Gaming & System Health & Fitness Eliminations Consolidated (Millions of Yen) Net revenue: Customers ¥ 142,239 ¥ 19,996 ¥ 85,480 ¥ 14,429 ¥ 262,144 Intersegment 411 － 285 (696) － Total 142,650 19,996 85,765 13,733 262,144 Operating expenses 121,167 15,323 87,687 19,303 243,480 Operating income (loss) ¥ 21,483 ¥ 4,673 ¥ (1,922) ¥ (5,570) ¥ 18,664

Three months ended Digital Other, Corporate and June 30, 2010 Entertainment Gaming & System Health & Fitness Eliminations Consolidated (Thousands of U.S. Dollars) Net revenue: Customers $ 280,900 $ 49,118 $ 240,947 $ 30,109 $ 601,074 Intersegment 1,831 - 1,232 (3,063) - Total 282,731 49,118 242,179 27,046 601,074 Operating expenses 256,205 36,110 240,495 35,726 568,536 Operating income (loss) $ 26,526 $ 13,008 $ 1,684 $ (8,680) $ 32,538

Notes: 1. Primary businesses of each segment are as follows: Digital Entertainment Segment: Production and sale of digital content and related products including Computer & Video Games, Amusement, Card Games, and Online. Gaming & System Segment: Production, manufacture, sale and service of gaming machines and the Casino Management System for overseas markets. Health & Fitness Segment: Operation of health and fitness clubs, and production and sale of health and fitness related goods. 2. “Other” consists of segments which do not meet the quantitative criteria for separate presentation of segment reporting. 3. “Corporate” primarily consists of administrative expenses of the Company. 4. “Eliminations” primarily consists of eliminations of intercompany sales and of intercompany profits on inventories.

(2) Geographic information

Three months ended United Asia/ June 30, 2009 Japan States Europe Oceania Total Eliminations Consolidated (Millions of Yen) Net revenue: Customers ¥ 45,444 ¥ 5,643 ¥ 2,951 ¥ 1,937 ¥ 55,975 - ¥ 55,975 Intersegment 2,037 862 4 77 2,980 ¥ (2,980) - Total 47,481 6,505 2,955 2,014 58,955 (2,980) 55,975 Operating expenses 46,478 6,550 3,190 1,712 57,930 (2,955) 54,975 Operating income (loss) ¥ 1,003 ¥ (45) ¥ (235) ¥ 302 ¥ 1,025 ¥ (25) ¥ 1,000

Three months ended United Asia/ June 30, 2010 Japan States Europe Oceania Total Eliminations Consolidated (Millions of Yen) Net revenue: Customers ¥ 42,899 ¥ 6,339 ¥ 2,226 ¥ 1,719 ¥ 53,183 - ¥ 53,183 Intersegment 2,345 325 16 154 2,840 ¥ (2,840) － Total 45,244 6,664 2,242 1,873 56,023 (2,840) 53,183 Operating expenses 43,604 5,739 2,322 1,555 53,220 (2,916) 50,304 Operating income (loss) ¥ 1,640 ¥ 925 ¥ (80) ¥ 318 ¥ 2,803 ¥ 76 ¥ 2,879

Year ended United Asia/ March 31, 2010 Japan States Europe Oceania Total Eliminations Consolidated (Millions of Yen) Net revenue: Customers ¥ 198,500 ¥ 33,743 ¥ 23,682 ¥ 6,219 ¥ 262,144 - ¥ 262,144 Intersegment 14,272 3,805 89 669 18,835 ¥ (18,835) - Total 212,772 37,548 23,771 6,888 280,979 (18,835) 262,144

Operating expenses 199,427 33,845 22,598 6,560 262,430 (18,950) 243,480 Operating income (loss) ¥ 13,345 ¥ 3,703 ¥ 1,173 ¥ 328 ¥ 18,549 ¥ 115 ¥ 18,664

Three months ended United Asia/ June 30, 2010 Japan States Europe Oceania Total Eliminations Consolidated (Thousands of U.S. Dollars) Net revenue: Customers $ 484,844 $ 71,644 $ 25,158 $ 19,428 $ 601,074 - $ 601,074 Intersegment 26,503 3,673 181 1,741 32,098 $ (32,098) - Total 511,347 75,317 25,339 21,169 633,172 (32,098) 601,074 Operating expenses 492,812 64,862 26,243 17,575 601,492 (32,956) 568,536 Operating income (loss) $ 18,535 $ 10,455 $ (904) $ 3,594 $ 31,680 $ 858 $ 32,538

For the purpose of presenting its operations in geographic areas above, KONAMI attributes revenues from external customers to individual countries in each area based on where the Company and its subsidiaries sold products or rendered services, and attributes assets based on where assets are located.

Note: (Unaudited) The consolidated financial statements presented herein were prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP).